Dubai gold rates rise by up to Dh1.75 a gram after volatile trading
Silver slips while oil-driven uncertainty shapes precious metals trade
DUBAI – Dubai gold prices moved higher on Wednesday, offering fresh momentum to the local jewellery market after fluctuating over the past two sessions.
The latest rates from the Dubai Jewellery Group showed gains across all major categories compared with Tuesday, although prices remained below Monday's levels.
The movement came as global bullion eased after a sharp rally, with investors turning their attention to rising oil prices, inflation expectations, the U.S. Federal Reserve's policy outlook and renewed tensions involving Iran.
Dubai gold rates
According to the Dubai Jewellery Group's suggested retail jewellery prices for Wednesday, 24K gold was priced at Dh486.25 per gram, while 22K stood at Dh450.50 per gram. The 18K rate reached Dh370.25 per gram.
Compared with Tuesday, local prices increased by Dh1.75 per gram across all three categories. On Tuesday, 24K gold was priced at Dh484.50 per gram, 22K at Dh448.75 and 18K at Dh368.75.
Despite Wednesday's rebound, Dubai gold remained below Monday's levels. On July 13, 24K gold was selling at Dh488.75 per gram, while 22K and 18K were priced at Dh452.50 and Dh372 respectively. That means Wednesday's rates were Dh2.50 per gram lower than Monday across each category.
Global market
International gold prices slipped on Wednesday after recording a surge of more than 2 percent in the previous session. Spot gold fell 0.6 percent to $4,028.43 per ounce, while US gold futures for August delivery eased 0.8 percent to $4,035.50.
The previous day's rally had been driven by softer-than-expected US consumer inflation data for June, which boosted expectations that price pressures were easing. However, markets quickly shifted their focus to higher crude oil prices, which revived concerns that inflation could remain elevated and keep interest rates higher for longer.
Oil prices extended gains for a third consecutive session after US President Donald Trump reimposed a naval blockade of Iranian ports and warned of further action unless Tehran resumed negotiations. The continued disruption around shipping through the Strait of Hormuz, a vital global energy corridor, added to uncertainty across financial markets and supported crude prices.
Investors are also awaiting the latest US Producer Price Index data for further clues on inflation. Market participants now see a lower probability of a Federal Reserve interest rate increase in September than before the inflation report, although expectations for a move later in the year remain elevated.
Other precious metals
Other precious metals also traded lower during Wednesday's session. Spot silver declined 0.5 percent to $58.35 per ounce, while platinum edged down 0.1 percent to $1,629.89. Palladium also weakened, slipping 0.2 percent to $1,302.10 per ounce.